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Measure 75

Proposed by initiative petition to be voted on at the General Election, November 2, 2010.

Ballot Title

Authorizes Multnomah County casino; casino to contribute
monthly revenue percentage to state for specified purposes

Result of “yes” vote

“Yes” vote authorizes a single privately-owned casino in
Multnomah County; requires casino to give percentage of
monthly revenue to State Lottery for specified purposes.

Result of “no” vote

“No” vote maintains the current state of the law, which does
not authorize any privately-owned casino or casinos anywhere
in the State of Oregon.

Summary

Currently, Oregon Constitution prohibits establishing casinos
within state. Under measure, State Lottery shall issue renewable
15-year lease permitting owner of former Multnomah
Kennel Club in Multnomah County to operate gaming
devices, table games, keno, other games of chance at that
site. Measure would become operative only if constitution
is amended to permit casino or casinos within state. Casino
operator shall pay 25% of adjusted gross revenues each
month to State Lottery. Lottery shall deposit money into a
Job Growth, Education and Communities Fund (separate
from general fund), annually shall apportion half of fund for
classroom instruction expenditures, 30% to counties. Casino
operator initially shall pay $1 million, subsequently shall pay
$2 million annually, to Lottery to administer measure. Other
provisions.

Estimate of Financial Impact

To implement the measure, state government would be
required to spend approximately $1 million in the first year. If
a casino is licensed, state government would be required to
spend between $4 million and $6 million in the following twoyear
period; and between $4 million and $8 million in each
two year period after that. These costs will not be incurred
unless a state constitutional amendment, separate from this
measure, authorizes implementation of this measure.

The measure would not require any local government spending.
The measure, alone, will have no direct effect on state
or local revenues. If a casino is licensed, state and local
revenues would be increased between $13 million and
$68 million each year. However, the measure would result in
a shift of funds from the state to local governments which
would leave the state with a gain of no more than $1.8 million
and a possible loss of $26.2 million.

Explanation of Estimate of Financial Impact

If authorized by the state constitution, this measure would
allow one privately owned casino in Multnomah County.

The committee estimated that regulation for a casino, as
required in the measure, would cost approximately $1 million
in the first year, and between $4 million and $6 million in the
next two-year period, and between $4 million and $8 million
for each two-year period after that, depending on the size of
the casino and the number of gaming devices and other
games offered. The estimates were based on cost
information from the Oregon State Police, which currently
regulates gaming at tribal casinos in Oregon. The measure
limits the amount of money that the casino operator would
be required to pay for regulation to $4 million in a two year
period, and specifies that no other public funds may be used
to pay for regulation.

The measure requires the casino operator to transfer 25%
of the casino’s net gaming revenues to the state for specific
purposes. The committee estimated that the total amount
that would be transferred would be between $83 million and
$147 per year depending on the size of the casino, and on its
gross revenues.

A casino would be expected to compete with the Oregon
State Lottery for business. The committee estimated that
state and local government payments from lottery revenues
would decline between $72 million and $79 million each year.

The measure also directs the use for the transferred casino
revenues. Depending on the size and gross revenues of the
casino, the committee estimates that each year between
$4 million and $7.5 million would go to state programs;
between $37 million and $67 million would go to local
governments;
and between $40 million and $74 million
would go to schools.

Oregon State Lottery revenues are used for a variety of
purposes. These include funding schools, parks, economic
development and fish habitat. To the extent that the casino
authorized under the measure would have the effect of reducing
lottery revenues, these programs would be affected.